(Alliance News) - Nanosynth Group PLC on Wednesday said it will change it strategy in regards to its antiviral mask business, as many countries relax their restrictions in response to the Covid-19 pandemic, leading to a reduction in demand and as a result.
Shares in the Nottingham, England-based nanoparticles firm were 12% lower at 0.35 pence on Wednesday in London.
As a result of the waning demand in surgical masks, alongside Volz Holdings, nanosynth is currently testing the spraying of its nanoparticle technology, with the purpose of selling the solution directly instead of manufacturing the masks and applying the solution.
The company noted that with the relaxing of mask mandates in several countries including the UK, US and Germany, the reduction in demand had led to a drop in whole unit prices to below 3.0 pence, as well as taking the premium buyers are willing to pay for nanosynth's mask product.
Nanosynth said its existing stock of masks will be written off in the company's accounts due to the incremental cost of preparing existing stock for commercial sales.
The remaining stock of masks will go to local hospitals and care homes.
"With the evolution of the Covid-19 pandemic, the average price and subsequent need for facial masks, particularly in Western economies has diminished. However, our existing work with Volz has identified significant new areas in which to apply our technology and has created numerous opportunities in a number of attractive market segments. We intend to exploit these as we continue to enhance our capability in the area of nanoparticle formulation and the production of consistent, accurate nanoparticle size and morphology," said Chief Executive Mark Duffin.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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